Sri Lanka's water management challenges have drawn international attention. (Image source: Alain Charles Publishing)

In an era of increasing water scarcity and climate uncertainty, the UAE has emerged as a critical partner for island nations struggling with water security challenges. 

A recent panel during the World Utilities Congress in Abu Dhabi highlighted the UAE's role in supporting Cyprus and Sri Lanka through technological assistance.

Cyprus, facing its most severe drought in three decades, received immediate and tangible support from the UAE. 

Maria Panayiotou, Minister of Agriculture, Rural Development, and Environment, emphasised this, stating, "Two days ago, Cyprus received desalination units of 15,000 cubic meters production of water per day. We have asked for help from the UAE, and the UAE responded positively. [It] responded immediately."

This gesture is more than a simple aid package; it represents a sophisticated approach to transboundary water cooperation. 

Panayiotou described it as "a tremendous help for Cyprus" that faces prolonged drought and severe water scarcity. 

The desalination units are part of Cyprus's broader strategy to achieve 100% water coverage by the end of the year, with a focus on using renewable energy and solar systems to reduce production costs.

Global South countries collaborate with each other

Similarly, Sri Lanka's water management challenges have drawn international attention. 

While the country boasts over 100 rivers and significant rainfall, political and infrastructural issues have complicated water distribution. 

The UAE's collaborative approach extends beyond immediate relief, supporting comprehensive water management strategies.

Both Cyprus and Sri Lanka view the UAE's support through a lens of regional cooperation and geopolitical partnership. 

As Panayiotou put it, "We act locally, but you have to think globally and cooperate regionally. This is important. We cannot do it by ourselves."

The support goes beyond mere technological transfer. It represents a model of diplomatic engagement where resource-rich nations assist countries facing environmental challenges. 

Anil Jayantha from Sri Lanka emphasised the importance of collaborative approaches, noting that solutions require working "together with all other ministries and international agencies."

As climate change continues to challenge traditional water management approaches, the UAE's support for Cyprus and Sri Lanka offers a blueprint for international cooperation.

It underscores the potential of strategic partnerships in addressing one of the most critical challenges of the 21^st century: ensuring water security for vulnerable nations.

The programme focuses on expanding Morocco’s natural gas-based power generation capacity. (Image source: TAQA Morocco)

TAQA Morocco, together with Nareva and the Mohammed VI Fund for Investment has signed three memorandums of understanding and related development agreements with the Government of Morocco and ONEE.

These agreements support the development of major infrastructure projects in the power, water, and renewable energy sectors aimed at reinforcing the Kingdom's sovereignty in both water and energy.

The programme focuses on expanding Morocco’s natural gas-based power generation capacity, boosting seawater desalination and water transport capabilities, and building a new electricity transmission line linking the southern and central regions.

With a total investment estimated at around 130 billion dirhams by 2030, the partnership will deliver:

- 900 million m³ of desalinated water and the transport of 800 million m³ via the national water highway project
- Acquisition of the 400 MW Tahaddart gas-fired power plant, plus the addition of 1,100 MW in combined-cycle capacity
- Development of 1,200 MW of renewable energy capacity under contract with ONEE, along with a high-voltage direct current (HVDC) transmission line of approximately 3,000 MW

All the projects will be co-owned equally by TAQA Morocco and Nareva, with the Mohammed VI Fund for Investment holding a 15% stake.

Abdelmajid Iraqui Houssaini, Chairman of the Board of TAQA Morocco, said, “This strategic public / private partnership will contribute to significantly and sustainably transform the domestic water and energy landscape in Morocco with the enhancement of desalination capacities and water transmission. It reinforces the transmission network with a higher contribution of gas-fired power generation in Morocco's baseload to increase the integration of renewable energy sources. This important investment programme will also accelerate the growth and diversification of TAQA Morocco’s business portfolio.”

30% of respondents invested over US$500mn in the water sector in 2024

Global law firm White & Case LLP has released a new report, Currents of Capital 2025, revealing strong investment momentum in water infrastructure, technology and services throughout 2024, with capital deployment set to rise further in 2025.

The findings are based on a survey of over 300 senior leaders from across the water value chain, including utilities, multinational corporations, investment funds, engineering firms and technology providers in more than 20 countries.

According to the report, 30% of respondents invested over US$500mn in the water sector in 2024, with 15% allocating more than US$1bn.

Infrastructure funds led this activity, deploying an average of US$1.3bn each, nearly matching the average US$1.5bn from public sector entities.

Multinational corporations accounted for much of the remaining investment.

Looking ahead, 72% of organisations expect to increase their water-sector spending by up to 50% in 2025, while 4% anticipate even steeper increases.

This signals rising confidence in the sector, underscoring growing awareness of water’s importance to both economic security and sustainable development.

Investment priorities are shifting, with 40% of respondents now viewing water as their top investment focus and 33% targeting portfolio growth, moving away from maintenance-driven spending towards strategic expansion.

Technology is seen as a central enabler of this shift, with more than 60% citing AI as the most likely driver of transformation in the sector.

While Western Europe and North America remain the top destinations for capital deployment, geographic diversification is picking up pace.

Asian investors are expanding into Western markets to tap advanced water management technologies, while 29% of all respondents are exploring new regional opportunities.

Growth in MENA

Notably, 40% of infrastructure funds identified the Middle East as a major growth opportunity, suggesting that they are taking a targeted yet calculated approach to broadening their investment horizons.

While just over one in three infrastructure funds believe the Middle East offers their company the greatest growth potential, private equity funds and multinational firms are increasingly turning to Asia for expansion.

The trend is being driven by infrastructure funds, technology providers, and international organisations, but the survey data indicates that only 29% of respondents are actively considering global diversification.

Transatlantic investment flows between North America and Europe remain strong, reinforcing a deepening relationship that facilitates both capital movement and knowledge exchange.

However, challenges persist. Water scarcity topped the list of sector concerns, with 88% of respondents ranking it as important or very important.

The high cost of technology solutions was also flagged, with 81% noting this as a significant barrier to progress.

One of the flagship projects underway is the Eastern Tunnel Project in Jeddah

The National Water Company (NWC) has begun a slew of wastewater treatment projects in Saudi Arabia, focusing on Jeddah and the country's northern borders.

It is launching 15 major development projects worth more than US$613mn (SAR 2.3bn) in Jeddah, aimed at enhancing wastewater services and operational efficiency for more than 1.3 million residents.

These initiatives form part of NWC’s wider strategy to expand infrastructure and improve service quality across key urban areas.

One of the flagship projects underway is the Eastern Tunnel Project in Jeddah, which involves constructing a sewage pipeline from areas east of Haramain Road to Lift Station 2 at the airport.

Valued at over US$206mn (SAR 774mn), the project will use advanced tunnelling technologies that minimise surface disruption, preserving traffic flow and existing services.

The 14 km transmission line will serve as a vital conduit for improving environmental systems in districts such as Braiman, Al Manar, Al Ajwad, and others, benefiting approximately 1.1 million people.

Additionally, NWC is developing a sewage lifting station at the airport with a daily capacity of 611,000 m³, at a cost exceeding US$244mn (SAR 915mn), to support pollution reduction and network expansion.

In the Samer districts, more than 17.8 km of new sewerage lines are being laid in a US$14.4mn (SAR 54mn) project, targeting 20,000 beneficiaries.

The company has also launched ten feeder line projects across several Jeddah districts and two surface water reduction initiatives in Bahra and Kilo 14, collectively valued at US$165.33mn (SAR 620mn).

In total, the Jeddah projects cover over 238 km and serve more than 184,000 people.

Supporting the northern residents

Through the company's Northern Cluster, NWC has also commenced work on two major sanitation projects in Saudi Arabia’s Northern Borders region, with a combined investment exceeding US$107mn (SAR 400mn).

The first project involves the construction of a tertiary wastewater treatment plant in Arar, designed to handle up to 40,000 m³ per day, alongside a lifting station with a capacity of 72,000 m³ per day.

This initiative alone is valued at more than US$91mn (SAR 341mn).

The second project focuses on expanding sewage infrastructure in Rafhaa Governorate, where over 74 km of sewage pipelines will be laid, and a lifting station with a 22,000 m³ daily capacity will be built at a cost of more than US$15.7mn(SAR 59mn).

NWC stated that these projects align with its broader strategy to meet rising demand for water and sanitation services, while also contributing to improved quality of life and supporting the goals of Saudi Arabia’s Vision 2030. 

The company added that these developments aim to accelerate development and to increase the percentage of services in unserved districts to increase operational efficiency in the water and wastewater sector.